The endless pursuit of wealth or even just trying to make ends meet can lead people into a negative place that feels near impossible to escape. You may find yourself afraid to spend money or spend most of your money the minute it hits your bank account. While there are certainly emotional components associated with this, the most important of all is the mindset you maintain around how you make and spend money. Let’s take a closer look at that.
What is a Toxic Money Mindset?
Simply put, having a toxic money mindset refers to having bad behaviors with your finances. While a bad relationship with money differs from person to person, it generally means when you experience a sense of powerlessness over money. For some, it could mean impulse buying, lying about how much money they have, among other things. However, toxic money habits can be remedied by recognizing the patterns and forming newer, better habits.
Here’s How You Can Do It
Tapping into the right money mindset can change the way you view your finances. It can help you manage debt, break unhealthy habits, and finally start to build savings that don’t feel like a burden. It’s just a matter of knowing how and where to start.
Here are the four ways to transform your relationship with money
1. Fix How You View Money
Failing to address how your spending and money management impacts your life will ultimately only lead you to more financial pain. People that are bad with money have never taken the time to dissect when and how they developed such habits, so even when they suffer negative consequences, they never get to the root of the issue.
Ask yourself how your concept of money has impacted your beliefs about yourself. Do you see money as something you’re burdened by and forced to earn, or do you see it as a valuable tool that you can use to grow and thrive?
2. Set Small Goals
Wins, regardless of how small they are, can boost your confidence and optimism in the longer run. The key is to set small goals to keep you on track. For example, rather than seeing your total debt balance as a success or failure, set monthly or weekly goals. Gradually, you’ll learn what types of goals work best for you, and your new money mindset will help you not only recover from the past mistakes but start reaching for new financial goals in the future.
3. Curb Emotional Spending
Since money represents power, it’s no surprise that many use it to ease their pain and regain a sense of control when life throws a few curveballs. If you have a tendency of making last-minute emotional purchases, you’re not the only one. Whether it’s nervousness, excitement, or anxiety, one thing is for certain; there is a big emotional load attached to money.
The first step to curbing impulse shopping is understanding what exactly drives you to spend. Pinpoint the moods or things that tempt you to make unplanned purchases. To get a better grip, consider taking steps like sticking to an overall monthly budget that will force you to save (and invest) a certain amount each month or delete your favorite shopping app and unsubscribe from shopping email newsletters. Every step towards your goals is a step in the right direction.
4. Abundance Mindset
Most of our anxieties result from the belief that we don’t have enough of anything, especially in comparison to others. It leads us to criticize those who are successful in life. Having such views is self-damaging. Shift your focus on the good things in life, and you’ll feel like life is getting back on track. Instead of believing that you don’t have enough, adopt an ‘abundance’ mindset. The abundance mindset is all about believing that your life will turn out as you planned if you are following the right steps. If not as you planned, then close enough.
Apart from this, take simple steps to practice gratitude. For instance, write down five things daily for which you’re grateful. It will take your mind off the anxieties surrounding you and help you focus on the good things in life.
Getting rid of bad money mindsets will free you from attitudes and feelings holding back your financial success. In the end, it’s not about how much money you make. It’s what your attitude toward that money is and how you spend or save it.